Business owner, Northport City Council at impasse over $9K water bill

Published: Thursday, July 18, 2013 at 3:30 a.m.

Last Modified: Wednesday, July 17, 2013 at 11:42 p.m.

NORTHPORT | The Northport City Council has been asked to forgive a $9,430 water bill — six years after it was due.

In August 2007, a business license and water account was set up for Bama Carwash, a gas station and carwash on U.S. Highway 82 in Northport.

In the first month, the business had a water bill of $4,419. In September 2007, the bill was an additional $3,700, and a city representative met with someone at the carwash to discuss a suspected leak on the owner’s side of the water meter.

In October 2007, the water meter was turned off and the account closed. Eventually, the matter was sent to collections after several certified letters were sent to the business owner, Larry Thomas, said Ron Davis, city attorney for Northport. At least $1,311.61 in late fees were tacked onto the bill over time.

But Thomas said his business never opened because the property was going to be sold.

“It’s unfair,” Thomas said on Tuesday. “Who allows for a water bill to get to that amount? The meter should have been turned off when it got that high.”

The city’s position is that the gas station and carwash were open for at least a month.

Documentation from 2007 shows that the property owners reported that Thomas was in business for about two months. However, documents also show that Thomas reported to the city that he only sold a few convenience store items

during the first couple of weeks, the carwash was inoperable and he was charged city sales tax of $50,80 after a warrant was put out for his arrest for not paying taxes.

“I never did business there,” Thomas said. “I got my license, but I never did open, period. Now this is preventing me from buying a house. That’s how I found out about this

because it was on my credit report. It’s an open case.”

Thomas went before the Northport City Council on July 8 appealing his claim, which was originally rejected by the Northport claims committee. The council offered to reduce the amount to $5,000, but Thomas told the council that was too high for him to pay back.

On Monday, the council cut the overdue bill again, this time down to $2,500.

“That’s $7,000 less than the original bill,” said City Councilwoman Judy Hayes.

“I feel that is more than fair,” added Councilman Rodney Sullivan.

According to a motion passed by the council, Thomas has 120 days to pay back the $2,500. If the amount is paid in full over the next four months, then it will be reported positively to the credit agencies, said City Administrator Scott Collins. If Thomas fails to pay the full $2,500 by the deadline, then the amount due will go back to $9,400, he said.

“If he doesn’t pay the $2,500 within the 120 days, then all bets are off,” said Council President Jay Logan.

But Thomas said that despite the water bill being cut by almost 75 percent, he still can’t afford to pay for it.

<p>NORTHPORT | The Northport City Council has been asked to forgive a $9,430 water bill — six years after it was due.</p><p>In August 2007, a business license and water account was set up for Bama Carwash, a gas station and carwash on U.S. Highway 82 in Northport.</p><p>In the first month, the business had a water bill of $4,419. In September 2007, the bill was an additional $3,700, and a city representative met with someone at the carwash to discuss a suspected leak on the owner's side of the water meter.</p><p>In October 2007, the water meter was turned off and the account closed. Eventually, the matter was sent to collections after several certified letters were sent to the business owner, Larry Thomas, said Ron Davis, city attorney for Northport. At least $1,311.61 in late fees were tacked onto the bill over time.</p><p>But Thomas said his business never opened because the property was going to be sold.</p><p>“It's unfair,” Thomas said on Tuesday. “Who allows for a water bill to get to that amount? The meter should have been turned off when it got that high.”</p><p>The city's position is that the gas station and carwash were open for at least a month.</p><p>Documentation from 2007 shows that the property owners reported that Thomas was in business for about two months. However, documents also show that Thomas reported to the city that he only sold a few convenience store items </p><p>during the first couple of weeks, the carwash was inoperable and he was charged city sales tax of $50,80 after a warrant was put out for his arrest for not paying taxes.</p><p>“I never did business there,” Thomas said. “I got my license, but I never did open, period. Now this is preventing me from buying a house. That's how I found out about this </p><p>because it was on my credit report. It's an open case.”</p><p>Thomas went before the Northport City Council on July 8 appealing his claim, which was originally rejected by the Northport claims committee. The council offered to reduce the amount to $5,000, but Thomas told the council that was too high for him to pay back. </p><p>On Monday, the council cut the overdue bill again, this time down to $2,500.</p><p>“That's $7,000 less than the original bill,” said City Councilwoman Judy Hayes. </p><p>“I feel that is more than fair,” added Councilman Rodney Sullivan. </p><p>According to a motion passed by the council, Thomas has 120 days to pay back the $2,500. If the amount is paid in full over the next four months, then it will be reported positively to the credit agencies, said City Administrator Scott Collins. If Thomas fails to pay the full $2,500 by the deadline, then the amount due will go back to $9,400, he said.</p><p>“If he doesn't pay the $2,500 within the 120 days, then all bets are off,” said Council President Jay Logan.</p><p>But Thomas said that despite the water bill being cut by almost 75 percent, he still can't afford to pay for it. </p><p>“It's still too high,” Thomas said. </p><p>Reach Lydia Seabol Avant at lydia.seabolavant@tuscaloosanews.com or 205-722-0222.</p>